Portage Minerals Inc.

Portage Minerals Inc.

June 30, 2011 16:05 ET

Portage Minerals Inc. Announces Proposed Clarence Stream Acquisition Terminated and Private Placement Amended to Up to $8 Million

ST. ANDREWS, NEW BRUNSWICK--(Marketwire - June 30, 2011) - Portage Minerals Inc. ("Portage" or the "Company") (CNSX:RKX) announced today that, due to unfavourable equity market conditions, the previously announced acquisition of Freewest Resources Canada Inc.'s ("Freewest") 70% interest in the Clarence Stream gold project was terminated. Portage will continue to hold a 30% interest in the Clarence Stream gold project. The Company has also amended its proposed private placement, as announced on May 12th, 2011 and is now intending to raise up to $8 million.

Ken Hight, Chairman and Chief Executive Officer, stated, "From the time we announced the signing of the definitive agreement with Freewest on June 9th 2011, the financing market for junior gold exploration companies has been very challenging due to both seasonal and macro-economic factors creating added uncertainty. While we are disappointed not to be able to close this deal at this time, we will continue to communicate with Freewest and attempt to revisit this deal when the market conditions are right."

According to Roger Dahn, Vice-President – Exploration, "We will be focusing our exploration efforts at this time, on the Golden Ridge Gold Property Joint Venture which contains an inferred mineral resource of 11,640,000 tonnes at a grade of 0.96 g/t gold yielding 359,300 ounces, remaining open in all directions for expansion and has a historic $5.60 an ounce discovery cost (Portage News Release April 26th 2011) and on 100% owned Golden Pike Project which has returned high grade intersects such as 43.07 g/t gold over 13.00 metres and 36.26 g/t gold over 10.06 metres from previous drill programs (Portage News Release Nov. 12th 2010)."

Mr. Hight further stated, "We are very excited about the Bald Hill Antimony property on which we expect to enter a joint venture with Tri-Star Resources plc ("Tri-Star") as we announced on June 28th 2011. Tri-Star is undertaking their due diligence and has until August 31st 2011 to propose a definitive agreement. This proposal contemplates an investment by Tri-Star of up to $12.5 million with Portage retaining a significant interest in the property. The addition of Tri-Star as a joint venture partner significantly advances the potential development of this property."

Subject to the close of the Tri-Star joint venture and the completion of the private placement, it is expected that approximately $10.0 million would be spent on exploration work on the Company's gold and antimony projects in the next year.

Roger Dahn, P. Geo. (New Brunswick), Vice President-Exploration of Portage, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the contents of this news release.

About Portage

Portage Minerals Inc. is a mineral exploration corporation exploring for gold in Eastern Canada. Further information about Portage can be accessed on the Company's website at www.portagemineralsinc.com and on the SEDAR website at www.sedar.com. The common shares of Portage are listed on the Canadian National Stock Exchange ("CNSX") as a mining issuer under the trading symbol "RKX".

To receive Company news releases via e-mail, please advise lauren@chfir.com and specify "Portage News" in the subject line.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. This forward-looking information includes, among others, statements regarding the private placement, the joint venture, exploration expenditures and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Portage and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward- looking information. The forward-looking statements contained in this news release are made as of the date hereof and Portage undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

CNSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Portage Minerals Inc.
    Ken Hight
    President and CEO
    (506) 529-8206
    (506) 529-8595 (FAX)

    CHF Investor Relations
    Robin Cook
    Senior Account Manager
    (416) 868-1079 x228
    (416) 868-6198 (FAX)